Analysis: Bitcoin has fallen back to $76k due to the repeated impact of Middle East tensions, as the Strait of Hormuz is closed again, triggering market volatility.

ME News message: On April 18 (UTC+8), amid the ongoing and repeated impact of the Middle East situation, Bitcoin’s price slid back to around $76,000. Earlier, Iran at one point announced the opening of the Strait of Hormuz, which sent risk assets higher and triggered a large-scale short squeeze, but the passage was closed again shortly afterward, and market sentiment reversed quickly.

Data shows that this round of moves triggered one of the largest liquidation events since 2026. About 168,336 traders were liquidated, with a total liquidation amount of $762 million, including approximately $593 million from short positions, accounting for nearly three-quarters. During the rally, crude oil prices once fell by nearly 10%, pushing Bitcoin through the key resistance zone in the $76,000 to $78,000 range; however, as the Strait of Hormuz once again came under military control, multiple oil tankers turned around, safe-haven sentiment rose, and prices retreated accordingly.

Structurally, this rally was driven by long-term negative funding rates, with shorts continuously paying the cost to longs, accumulating conditions for a squeeze. Despite the short-term pullback, Bitcoin’s weekly performance still maintained an increase of about 4.5%. Mainstream assets such as Ethereum have been relatively more stable. At present, the market focus has shifted to the critical support level at $76,000. If the weekly close remains above this level, it may hold the breakout structure; if it breaks below, the price could return to the range-bound area seen since March. (Source: PANews)